British lender Barclays (BCS) has reported a full-year net profit of £6.38 billion ($8.67 billion U.S.) for 2021, ahead of analyst expectations of £5.75 billion, as its investment banking unit produced record returns.
Fourth-quarter net income attributable to shareholders came in at £1.12 billion, outstripping a median forecast of £756.5 million, according to Refinitiv data.
The figures marked a significant improvement from the £1.53 billion net profit reported in 2020 and £220 million in the fourth quarter of that year, as the United Kingdom navigated nationwide Covid-19 lockdown measures.
The bank endured a turbulent final quarter of 2021, with long-time chief executive officer (CEO) Jes Staley resigning in November following an investigation by regulators into his relationship with disgraced financier Jeffrey Epstein. He was replaced by C.S. Venkatakrishnan.
Profit before tax in Barclays corporate and investment banking unit hit a record £5.8 billion in Q4, including record investment banking fees and equities income.
The bank released £700 million in credit impairment provisions, versus a £4.8 billion charge in 2020. Full-year profit before tax was £8.4 billion, up from £3.1 billion in 2020.
Barclays current CEO C.S. Venkatakrishnan said in a statement that 2021 was the year in which the bank’s strategy set out in 2016 came to fruition, with double-digit return on tangible equity and strong profit performance.
